New Variable Rate High Street ISA Account Promises Savers a Bonus Year After Year

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Principality Building Society today, Monday 14 February 2011, launches its Promise ISA account designed for savers who don’t want to lock their money away. The account offers a competitive rate of 2.30% tax-free* p.a. /AER**, inclusive of a 0.80% unconditional bonus for the first year.

After 12 months, savers that make no more than two withdrawals per tax year will be rewarded with a fixed, conditional bonus of 0.50%, payable on the core variable rate of 1.50% AER**.

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Principality Building Society today, Monday 14 February 2011, launches its Promise ISA account designed for savers who don’t want to lock their money away. The account offers a competitive rate of 2.30% tax-free* p.a. /AER**, inclusive of a 0.80% unconditional bonus for the first year.

For the first 12 months, ISA savers can enjoy unlimited withdrawals with the Promise ISA, subject to 30 days’ notice or 30 days’ loss of interest.

After 12 months, savers that make no more than two withdrawals per tax year will be rewarded with a fixed, conditional bonus of 0.50%, payable on the core variable rate of 1.50% AER**.

Following in the footsteps of the successful Principality Promise Saver, which launched in October 2010, the Promise ISA rewards savers with a bonus year after year, offering them the peace of mind that their interest won’t plummet as soon as the bonus falls out. Even without the bonus, the core variable Promise ISA rate is three times the Bank of England base rate.

Available to both new and existing customers, the account allows ISA customers to transfer in previous years’ subscriptions and offers the flexibility to deposit new subscriptions up to the limit of £5340 for the tax year 2011/12 – allowing savers to keep all of their ISA subscriptions in one place if they wish.

ISA customers can also choose whether to have their interest paid monthly, to supplement their income, or annually on 6 April.

Kate Murray, Principality’s Savings Manager, said: “Many providers have looked to boost savers returns by offering introductory bonuses that enhance the return for a short period. And while this is excellent news for savers at a time when the Bank of England base rate is at an historic low, it does mean that they need to stay savvy and watch out when the account reaches its first anniversary.

“The Promise ISA aims to offer savers a consistent, tax-free return by rewarding savers that are committed to leaving their money untouched and building a nest egg, Best buy rates can be there one minute and gone the next – consistency is the key for savers to ensure a good level of return.”

Following the first 12 months, Principality will write to all Promise ISA customers to inform them of their new rate.

Principality’s Promise ISA is available from any Principality branch or by calling 0845 0450 452 to request an application form.